DeClout inks agreement to sell 36.3m Procurri shares for S$12m

CATALIST-listed DeClout has entered into an agreement to sell 36.3 million shares in Mainboard-listed Procurri Corp to independent third party Novo Tellus PE Fund 2 at S$0.33 per share, which will raise net proceeds of S$12 million.

The purchaser is a private equity firm that invests in technology and industrial companies based in South-east Asia. The sale will represent a premium of 3 per cent to the volume-weighted average price of Procurri shares of S$0.3202 traded on Feb 14, being the last market day on which Procurri shares were traded prior to the date of the agreement.

DeClout plans to use the proceeds to repay the group's external borrowings up to S$4.2 million and the remaining S$7.8 million for funding of merger and acquisition activities.

The book value of the sale shares as at Sep 30, 2018 was S$5.7 million. The sale proceeds represent an excess of S$6.3 million over the book value of the sale shares.

On Jan 4, DeClout sold 48 million shares in Procurri at S$0.32 per share to two independent third parties, raising net proceeds of S$15.2 million. It did not identify the buyers.

After taking into consideration this disposal, whereby the remaining Procurri shares held by DeClout then were revalued at S$0.32 per share, the completion of the proposed sale will result in an accounting gain on disposal of about S$0.5 million on the remaining 48 million Procurri shares held by the company.